Workers Compensation Exemptions

Special Situations

(Exemptions From Workers Compensation)

1. Household domestic service
2. Casual employment
3. Employment of outworkers
4. Employment of members of an employer’s family dwelling in his household if the employer is the owner of a sole proprietorship or a single member limited liability company that is taxed as a sole proprietorship.
5. Employment of members of an employer’s family not dwelling in his household if the employer is the owner of a sole proprietorship, provided the family member has filed with the Commission a written declaration of his election for exemption from coverage. For the purposes of this subsection, “member of an employer’s family” means a natural person or the spouse of a natural person who is related to the employer by blood, adoption or marriage within the first degree of consanguinity or a grandchild or the spouse of a grandchild.
6. Employment as the owner of a sole proprietorship; employment of a working member of a partnership or a limited liability company; employment of an officer of a corporation who at all times during the period involved owns not less than ten percent (10%) of all of the issued and outstanding voting stock of the corporation and, if the corporation has directors, is also a director thereof.
7. Employment for which a rule of liability for injury, occupational disease, or death is provided by the laws of the United States.
8. Employment as a pilot of an aircraft, while actually operating an aircraft for the purpose of applying fertilizers or pesticides to agricultural crops, shall be exempt from the provisions of the worker’s compensation law, provided that:
   1. The Industrial Commission has issued to the agent submitting the policy written approval of a policy of insurance that will provide benefits in an amount of not less than: twenty-five thousand dollars ($25,000) accidental death and dismemberment, ten thousand dollars ($10,000) medical expense payments, and five hundred dollars ($500) per month disability income for a minimum of forty-eight (48) months; and
   2. Once the policy has been approved by the Industrial Commission, proof of coverage for the specified pilot has been filed with the Commission prior to the pilot actually operating an aircraft.Provided however, the agent issuing the policy shall obtain approval of the policy of insurance, and proof of coverage for each pilot insured under the policy shall be filed with the Commission, each calendar year. The exemption shall be effective on the date the Commission receives proof of coverage for the specified pilot, but no earlier than the date written approval of the policy was issued by the Commission.
9. Associate real estate brokers and real estate salesmen. Service performed by an individual for a real estate broker as an associate real estate broker or as a real estate salesman, if all such service performed by such individual for such person is performed for remuneration solely by way of commission.
10. Volunteer ski patrollers.
11. Officials of athletic contests involving secondary schools, as defined in section 33-119, Idaho Code.

Another exemption would be the Election of Exempt Coverage. An employer engaged in any of the above exempt situations may elect coverage thereof by a declaration in writing of him/herself and his/her surety filed with the Commission that the provisions of the law shall apply thereto. Unless the effective date of such coverage is otherwise fixed in such declaration, coverage shall be deemed effective as of the date of filing such election, if the employer also files simultaneously or has on file approved security under section 72-301, Idaho Code; otherwise, such coverage shall be deemed effective upon the filing of approved security.

Idaho Code § 72-212(4) was amended during the 2013 legislative session to exempt family member employees of a single member limited liability company (LLC) that is taxed as a sole proprietorship. The exemption applies only to family members residing in the employer’s household. Family member employees who meet the criteria to be exempt under the new exemption will not be covered under their employer’s workers’ compensation insurance policy as of July 1, 2014 unless an IC52 Election of Coverage form is filed with the Industrial Commission by the employer and the employer’s workers’ compensation insurance carrier.  For additional information on the exemption, contact the IIC Employer Compliance Department by phone at 208-334-6000.